Managment Quiz #4 Flashcards
(78 cards)
___ is a process of identifying, recording, summarizing, and reporting in monetary terms, information about an organization during a specific period of time
Accounting
Which Selected accounting principles include:
The business unit
The person or business the financial information is being prepared for
- Identification of the entity
__is the only way an organization can determine the extent of how a specific service and/or product is contributing to the organization’s financial performance
Matching
Select accounting Principle?
Business must record the expenses that are associated with the revenues generated for a given period
Matching Principle
Selected Accounting Principle?
This is what the organization paid for that resource (historical or acquisition cost)
Identification of the cost of any quantifiable resource
Selected Accounting Principles?
The information in the financial reports is based on objective and verifiable evidence like receipts
Availability of objective evidence
Selected accounting principles?
Recognition that financial reports may have small or insignificant errors but not so great as to materially change a reviewer’s decision about the organization’s financial position
Acceptance of materiality
Selected accounting principles?
In reference to the financial position and results of operations of a business in accordance with GAAP
Trust in full disclosure
Selected Accounting Principles?
Consistency in the accounting methods used in the business from year to year
Essential for comparisons
Application of consistency
Multiple payers pay different rates, so providers often estimate the average payment and set prices ___ than the expected average payment in order to maximize revenues.
higher
__ is a financial report category that details the differences between the price charged and the price paid by third-party payers.
Allowances for contractual deductions
__ is a form of financial oversight often found in not-for-profit hospitals and health care organizations.
Fund accounting
An __ is simply a listing of all of an organization’s accounts by title and corresponding numerical code to classify and differentiate between accounts
account
A book of accounts is called a __
ledger
When a financial event (a transaction) occurs, it is recorded (posted) in a ledger in two places
This is called __
Double entry
A payment received from a third-party payer is reflected as:
An __ in the entity’s cash account (asset)
A __ in accounts receivable (what is owed the business
increase
decrease
__ What is owed to the business
Accounts Receivable
\_\_ are economic resources that are owned by a business and are expected to benefit future operations, such as: Inventories Accounts receivables Capital assets Cash Investments
Assets
\_\_ are debts make up the amount of the organization’s assets owned by its creditors, e.g., account categories accounts payable accrued expenses notes payable
Liabilities
__ is money spent to produce or purchase a service or product that is sold
expense
Revenue is __
Gross income
When expenses exceed revenues, the difference is classified as a ___
When revenue exceeds expenses, the excess is classified as a ___
loss
profit
the concept of __ refers to the practice of recording financial transactions within an appropriate period of time.
accrual
expenses be recorded in the period when the resources are __
consumed
